CHANGE OR DESTROY: THE DIGITAL TRANSFORMATION OF INDONESIAN MSMES TO ACHIEVE SUSTAINABLE ECONOMY

The development of digital technology affects every aspect of human life, including MSMEs that dominate the global economy. In Indonesia, 99.99% of the economic sector is run by MSMEs (Micro, Small, and Medium Enterprises). Despite the limitation of digital transformation, MSMEs should be able to transform and accelerate technology as a strategy to maintain the business or fail in their business. One form of digital transformation in MSMEs is through the use of online media to support their business. Human behavior has shifted into Society Era 5.0, making social media and technology necessary for humans. This study aimed to explore: (1) the level of acceptance of MSMEs towards online media, (2) the use of online media by MSMEs, (3) the choice of online media used by MSMEs, and (4) the impact of using online media on MSMEs. This research is quantitative research with a descriptive approach. The research data was obtained by distributing questionnaires to MSME actors in several cities in Indonesia. The data was analysed using the percentage method. The results of the study showed that: (1) MSME actors are very receptive to the use of online media to support digital transformation, (2) the majority of MSME actors choose to use online media in running their business, (3) WhatsApp, Facebook and Instagram are the most popular online media used by Indonesian MSME actors and (4) the use of online media makes MSMEs able to maintain their business during the pandemic.